TOKYO: Global shares held firm near record highs on Monday while U.S. bond yields flirted with three-month lows as investors expect the Federal Reserve to stick to its dovish mantra later this week.
"It is becoming painful for bond bears and I bet the 10-year yield will fall to 1.25per cent or even 1per cent," said Akira Takei, fund manager at Asset Management One, noting that U.S. economic recovery is likely to slow in coming months. While some Fed board members have said the bank should start discussing tapering its bond buying, most investors think a majority of policymakers still prefer to wait a bit more.
The British pound changed hands at US$1.4113, near the lower end of its trading range over the past month, ahead of British Prime Minister Boris Johnson's announcement on Monday on whether its planned lifting of coronavirus restrictions can go ahead as scheduled on June 21.